AirPods typically sell for $160. Sales are going really well. In fact, 55000 AirPods are sold each month (on average). Apple did some research and realized that for each $20 decrease in price of AirPods, they can sell 15000 AirPods more each month. How much would you advise the company to charge for AirPods so they can maximize monthly revenues? Round your answer to the nearest whole number! Your answer must be supported by a quadratic model. What is the maximum revenue? How much bigger is the maximum monthly revenue than the current (meaning before the research study took place) monthly revenue?
AirPods typically sell for $160.
Sales are going really well. In fact, 55000 AirPods are sold each month (on average).
Apple did some research and realized that for each $20 decrease in price of AirPods, they can sell 15000 AirPods more each month.
How much would you advise the company to charge for AirPods so they can maximize monthly revenues? Round your answer to the nearest whole number! Your answer must be supported by a quadratic model.
What is the maximum revenue? How much bigger is the maximum monthly revenue than the current (meaning before the research study took place) monthly revenue?
Given that $160 Cost of airPod gives sales of 55000 airPods each month.
Let the cost of each airPod is decrese by x times $20 then the sells increase by x times 15000 airPods.
Thus, Cost of airPod is 160 – 20x and sells of airPods is 55000 + 15000x
Revenue function, R(x) is given by,
Differentiate revenue function with respect to x
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